Question

In a centrally planned economy, the central problems are solved by?

• A. Demand for goods
• B. Planning authority
• C. Supply of goods
• D. Market mechanism

Answer 1

Answer:

B. Planning authority

Method which can be employed to solve the central problems in a centrally planned economy, is the adoption of economic planning,for that Government sets up a central planning authority which has been called by several names, such as planning commission, planning ministry or planning board.